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What are the effects of a declining population to an economy?

List the effects of a declining population to an economy.

Answers

Maurice
(i) Reduces government expenditure, as the government spends less resources in the provision of services.

(ii) Discourages investment as the market for goods and services also declines forcing business to close down.

(iii) Reduces dependency of the unemployed on the employed as a declining population leads in reduction in labour supply creating employment opportunities.

(iv) Leads to proper utilization of land and other resources as it reduces pressure created and other resources.

(v) Declining population may enable a country to attain optimum population hence better living standards.
maurice.mutuku answered the question on August 12, 2017 at 13:27

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